The U.S. Supreme Court in February struck down one set of tariffs that President Donald Trump imposed, and the U.S. Court of International Trade ruled last week that his temporary 10% global tariffs are unlawful, too.
And while the Trump administration appeals the fresh ruling, the U.S. Trade Representative’s office is at work on investigations that, once completed, could enable the president to impose perhaps more durable and long-lasting tariffs under the Trade Act of 1974 (Section 301) and the Trade Expansion Act of 1962 (Section 232).
Should the recreational boating industry be resigned to the idea that tariffs will be a cost of doing business for the remainder of Trump’s term? Former NMMA president Thom Dammrich believes so.
“President Trump loves tariffs,” Dammrich, now an advisor at Global Marine Business Advisors, told Trade Only Today. “During the campaign, he said it was his favorite word in the dictionary. So one way or another, he is going to continue to attempt to use tariffs broadly.
“I think as long as Trump is president, we should expect tariffs under some authority,” Dammrich added. “As he moves to use Section 301 and Section 232 tariffs, these will likely be enduring and difficult to remove. We saw that [President Joe] Biden did not lift Section 232 tariffs on Chinese aluminum and steel. These tariffs add real costs to users of tariffed products and increase prices for consumers. With inflation now at 3.8% and expected to go higher, this is not good policy.”
Recreational marine export consultant Julie Balzano agrees that tariffs won’t likely be going away anytime soon.
“I don’t think companies should approach this with the mindset of ‘waiting for things to go back to normal,’ ” Balzano, of Global Connect Marketing Services, told Trade Only Today. “Instead, they should think about this as the new normal and decide how best to operate successfully in a more volatile trade environment.
“The marine industry has already gone through several years of disruption between Covid, supply-chain issues, inflation, freight increases, labor shortages and now tariffs,” Balzano added. “In many ways, resiliency and adaptability have become essential skills for long-term business success. I think companies need to be careful not to make abrupt business decisions based on daily headlines or the political back-and-forth surrounding trade policy.”
Balzano said she believes the marine industry is watching the latest tariff court case “less from a political standpoint and more from a business certainty standpoint. Regardless of whether companies philosophically agree or disagree with tariffs, what they need most is predictability, as I have emphasized repeatedly.
“The marine industry operates on long production cycles,” she said. “The uncertainty has been especially difficult for smaller companies that don’t have large legal departments or deep financial reserves. A large multinational may absorb these swings more easily. A smaller marine manufacturer importing specialized components often cannot.”
Philip Easthill, secretary general at European Boating Industry, agreed that “besides the tariffs themselves, the lack of certainty and predictability are challenging. Our businesses are resilient, but the ever-changing tariff picture complicates operations and long-term planning for businesses on either side of the Atlantic.”
Easthill told Trade Only Today that the European Commission, the main executive body of the European Union, has told EBI that the Turnberry agreement from last July “remains the basis for the EU’s engagement with the U.S. We call for its swift implementation for the EU and U.S. to tackle ongoing issues, such as the U.S.’s Section 232 tariffs on steel and aluminum derivatives that are affecting a number of component manufacturers in the recreational boating industry.”
The Turnberry agreement is a political understanding that Trump and European Commission president Ursula von der Leyen reached in Scotland last summer to stabilize trade relations between the U.S. and Europe, and to cap tariffs. It has faced ongoing delays and disputes.
“North America and Europe together are the leading boating markets globally, making it critical to closely collaborate and improve trade conditions to support industry growth and resilience,” Easthill said.
Dammrich said he believes U.S. marine manufacturers are frustrated with the government’s tariff policy.
“On again, off again, paid, refunded,” Dammrich said. “It creates a lot of time-consuming paperwork for smaller companies in the marine industry, which is comprised primarily of small and medium-sized businesses.
“A smart, effective U.S. trade policy would provide clarity and consistency, be more targeted at real structural problems, more accountable (effective congressional oversight) and more aligned with a long-term economic strategy rather than short-term politics,” he added. “I think it is time for a congressional overhaul of tariff laws to put Congress back in the driver’s seat.”
The status of the latest tariff court case puts the marine industry and other affected industries in a difficult position. Although the trade court rejected Trump’s latest tariffs, the U.S. Court of Appeals for the Federal Circuit in Washington has stayed the ruling — requiring affected companies to continue to pay the tariffs, for now — while it considers the Trump administration’s request that the stay be continued until its appeal is finally resolved, perhaps again by the Supreme Court.
Balzano said she thinks there is a reasonable possibility that the latest tariffs will eventually be struck down.
“I don’t think most marine businesses are operating under the assumption, however, that the tariffs will simply disappear anytime soon,” she said. “The appeals process could take considerable time, and if stays are granted, importers may still pay tariffs throughout that process. The reality is that for many companies, the immediate financial and operational impact is already here, regardless of how the courts ultimately rule.”
The National Marine Manufacturers Association told Trade Only Today in a prepared statement that it “continues to support policies that strengthen U.S. marine manufacturing, provide certainty for businesses and keep made-in-America recreational boats globally competitive.”
As the current tariff case proceeds through the courts, NMMA said, the “recreational boating industry is focused on ensuring manufacturers — the vast majority of which are small businesses — have clarity and predictability to make long-term business decisions.
“The recreational boating industry supports more than 812,000 American jobs and generates $230 billion in annual economic impact, with 95% of boats sold in the U.S. made in the U.S. and 93% of boatbuilders classified as small businesses. Stable trade policy and integrated North American supply chains remain important to sustaining that economic activity.
“NMMA has testified twice before the Office of the U.S. Trade Representative and other federal agencies to reiterate the industry’s need for certainty and stability among key trading partners and throughout the global supply chain,” the group added. “In addition, NMMA’s comment letters to the administration have consistently underscored that the recreational boating industry is aligned with the president’s vision to strengthen domestic manufacturing.
“NMMA is continuing to monitor the legal and regulatory developments closely and remains engaged with federal policymakers on behalf of the industry. We are also working directly with members to provide updates, guidance and resources as additional information becomes available regarding any claims or compliance processes tied to the court’s decision and future tariff actions.
“More broadly, manufacturers recognize that trade policy will likely remain an active area of focus in the current economic environment. The industry’s priority is ensuring policies are implemented in a way that supports American manufacturing, protects supply-chain stability and allows businesses to continue investing in U.S. jobs, innovation and economic growth.”
